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Cross-Country Empirical Studies of Systemic Bank Distress; A Survey

  • Asli Demirgüç-Kunt
  • Enrica Detragiache

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in present-day economies. The paper reviews the two basic methodologies adopted in cross-country empirical studies-the signals approach and the multivariate probability model-and their application to studying the determinants of banking crises. The use of these models to provide early warnings for crises is also reviewed, as are studies of the economic effects of banking crises and of the policies to forestall them. The paper concludes by identifying directions for future research.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/96.

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Length: 32
Date of creation: 01 May 2005
Handle: RePEc:imf:imfwpa:05/96
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